[Federal Register Volume 75, Number 131 (Friday, July 9, 2010)]
[Notices]
[Pages 39602-39603]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-16686]
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SECURITIES AND EXCHANGE COMMISSION
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated: Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Reduce the Payments That CBOE Makes to CBOE Trading
Permit Holders That Participate in a Program Under Which CBOE
Subsidizes the Costs of Providing and/or Using Certain Order Routing
Functionalities
July 1, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on June 30, 2010, Chicago Board Options Exchange, Incorporated
(``CBOE'' or the ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change as described in
Items I, II, and III below, which Items have been prepared by CBOE. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
CBOE proposes to reduce the payments that CBOE makes to CBOE
Trading Permit Holders that participate in a program under which CBOE
subsidizes the costs of providing and/or using certain order routing
functionalities. This rule change does not provide for any
modifications to the text of CBOE's rules. The text of the proposed
rule change is available on the Exchange's Web site (http://www.cboe.org/legal), at the Exchange's Office of the Secretary and at
the Commissions Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, CBOE included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. CBOE has prepared summaries, set forth in Sections A, B,
and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, Proposed Rule Change
1. Purpose
CBOE proposes to reduce the payments that CBOE makes to CBOE
Trading Permit Holders that participate in a program under which CBOE
subsidizes the costs of providing and/or using certain order routing
functionalities.\3\ If a Trading Permit Holder has elected not to have
CBOE perform certain marketing services on its behalf, the payment
would be reduced, with respect to orders routed to CBOE through a
participating Trading Permit Holder's system, from $0.05 per contract
to $0.04 per contract.\4\ If a member has elected to have CBOE perform
marketing services on its behalf, the payment with respect to such
orders would be reduced from $0.04 per contract to $0.03 per contract.
The Exchange intends to make the change effective commencing August 1,
2010.
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\3\ The order router subsidy program is described in SR-CBOE-
2007-34 (see Securities Exchange Act Release No. 55629 (April 13,
2007), 72 FR 19992 (April 20, 2007) (SR-CBOE-2007-34)) as
supplemented by SR-CBOE-2008-27 (see Securities Exchange Act Release
No. 57498 (March 14, 2008), 73 FR 55 (March 20, 2008) (SR-CBOE-2008-
27)).
\4\ The marketing services that CBOE provides to Trading Permit
Holders electing to have CBOE provide such services are described on
page 5 of SR-CBOE-2007-34.
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CBOE is not proposing any other changes in the program. CBOE stated
in SR-CBOE-2007-34, and affirmed in SR-CBOE-2008-27, that nothing about
the subsidy program would relieve any CBOE Trading Permit Holder that
is using an order routing functionality whose provider is participating
in the program from complying with its best execution obligations.\5\
Those statements remain true with respect to the program as CBOE is
proposing to revise it.
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\5\ SR-CBOE-2007-34, pp. 5-6; SR-CBOE-2008-27, p 4.
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2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Securities Exchange Act of 1934 (``Act'') \6\, in general, and furthers
the objectives of Section 6(b)(4) \7\ of the Act in particular, in that
it is designed to provide for the equitable allocation of reasonable
dues, fees, and other charges among CBOE Trading Permit Holders and
other persons using its facilities.
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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(4).
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[[Page 39603]]
B. Self-Regulatory Organization's Statement on Burden on Competition
CBOE does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \8\ and subparagraph (f)(2) of Rule 19b-4 \9\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission may summarily abrogate such rule change if
it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an e-mail to [email protected]. Please include
File Number SR-CBOE-2010-066 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2010-066. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-CBOE-2010-066 and should be
submitted on or before August 9, 2010.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-16686 Filed 7-8-10; 8:45 am]
BILLING CODE P